NEW YORK, New York – U.S. industrial stocks rose Friday after the nonfarm payrolls report came in better than expected. Tech shares however lagged.

Total nonfarm payroll employment increased by 187,000 in August, well ahead of expectations of 170,000, while the unemployment rate rose to 3.8 percent, the U.S. Bureau of Labor Statistics reported Friday. Employment continued to trend up in health care, leisure and hospitality, social assistance, and construction. Employment in transportation and warehousing declined.

“It would be a mistake to look at today’s employment report, along with recent data, and say the Fed is done,” Steve Wyett, chief investment strategist at BOK Financial told CNBC Friday.

“Even though trends in inflation are moving the right direction and a broader view of the employment market would indicate wage pressures should abate, overall economic growth is above trend and inflation remains well above the Fed’s recently confirmed two percent target,” Wyett added.

The Standard and Poor’s 500 (^GSPC) closed at 4,515.77, marking a modest +8.11 point increase, equivalent to a +0.18 percent uptick. Investors observed a relatively steady day on Wall Street, with the S&P 500 maintaining its positive momentum.

Meanwhile, the Dow Jones Industrial Average (^DJI) displayed resilience, closing at 34,837.71. The Dow Jones gained +115.80 points, representing a +0.33 percent increase. The index showcased strength amid market fluctuations, attracting the attention of traders with a trading volume of 285.334 million shares.

In contrast, the NASDAQ Composite (^IXIC) experienced a minor setback, closing at 14,031.81, down -3.15 points, or a -0.02 percent decrease. Tech-heavy NASDAQ Composite witnessed fluctuations throughout the trading day, reflecting market uncertainties. The trading volume for NASDAQ was 3.589 billion shares.

U.S. Dollar rallies on Global Forex Markets on Robust Employment Picture

In a day of trading marked by fluctuating currencies, the world foreign exchange markets closed with the U.S. dollar rebounding strongly Friday. Investors closely tracked the performance of major currency pairs, reacting in the main to Friday’s nonfarm payrolls report.

The Euro / US dollar (EURUSD) currency pair retreated to 1.0773, representing a -0.65 percent decrease or a decline of -0.00700.

The Japanese yen (USDJPY) currency pair slipped to 146.18 Friday, indicating a -0.45 percent loss or -0.65.

In the case of the Canadian dollar (USDCAD) currency pair, the exchange rate settled at 1.3598, marking a frop of -0.67 percent or -0.0090.

Meanwhile, the British pound / US dollar (GBPUSD) fell to 1.2587, signaling a -0.67 percent decrease or a drop of -0.0084.

The Swiss franc weakened to 0.8859 Friday, reflecting a -0.29 percent decrease or a loss of -0.0025.

The Australian dollar settled around 0.6448, marking a -0.56 percent dip or a loss of -0.0036.

The New Zealand dollar dropped to 0.5941, indicating a -0.41 percent decrease in exchange rate, or a decline of -0.0021.

Global Stocks Markets Close with Marginally Positive Bias on Friday

In a mixed day of trading across the globe, world stock markets delivered a varied set of closing quotes on Friday. Investors around the world kept a close watch on the performances of major indices, responding to a range of economic indicators including the nonfarm payroll data released in the U.S.

CANADA

On the North American front, the S&P/TSX Composite index (^GSPTSE) in Canada demonstrated robust performance, closing at 20,545.36, up by a substantial +252.74 points, indicating a +1.25 percent increase. The Canadian market gained momentum, attracting investors with a trading volume of 207.83 million shares.

UNITED KINGDOM

The FTSE 100 (^FTSE) displayed resilience as it closed at 7,464.54, marking a +25.41 point gain, equivalent to a 0.34 percent increase. London’s blue-chip index enjoyed a positive finish to the week.

EUROPE

In Europe, the ESTX 50 PR.EUR (^STOXX50E) dipped slightly, closing at 4,282.64, down -14.47 points, or -0.34 percent lower.

The Euronext 100 Index (^N100) experienced marginal fluctuations, closing at 1,355.17, with a minor loss of -0.57 points, or -0.04 percent.

Meanwhile, the DAX PERFORMANCE-INDEX (^GDAXI) in Germany faced a setback Friday, closing at 15,840.34, down by -106.74 points, or a -0.67 percent decline. Investors in Frankfurt observed a dip in market sentiment.

Over in France, the CAC 40 (^FCHI) followed suit, with a closing quote of 7,296.77, indicating a loss of -19.93 points, or a -0.27 percent decrease. Parisian traders experienced a slightly bearish day.

Belgium’s BEL 20 (^BFX) recorded gains, closing at 3,682.86, up by +16.89 points, reflecting a +0.46 percent increase.

RUSSIA

In Moscow, the MOEX Russia Index (IMOEX.ME) closed at 2,222.51, with a minor dip of -4.14 points, indicating a -0.19 percent decrease.

ASIA

In the Asia-Pacific region, the Nikkei 225 (^N225) in Japan posted a positive gain of +91.28 points, closing at 32,710.62, representing a +0.28 percent increase. Tokyo’s market continued its upward trajectory.

On the other hand, the HANG SENG INDEX (^HSI) in Hong Kong remained steady at 18,382.06, with no significant change and a 0.00 percent movement. Market participants in Hong Kong encountered a relatively flat trading day.

The SSE Composite Index (000001.SS) in Shanghai, China, had a commendable performance on Friday, closing at 3,133.25, reflecting a +13.37 point gain, or a +0.43 percent rise. The index also saw a notable trading volume of 3.461 billion shares.

Shenzhen, China, witnessed gains as well, with the Shenzhen Index (399001.SZ) closing at 10,463.74, up +45.53 points, indicating a +0.44 percent increase, with a trading volume of 930.37 million shares.

Singapore’s STI Index (^STI) closed at 3,233.30, gaining +13.08 points, or +0.41 percent.

The S&P BSE SENSEX (^BSESN) in India displayed robust performance, closing at 65,387.16, with an impressive +0.86 percent gain of +555.75 points, while India’s NIFTY 50 (^NSEI) soared, closing at 19,435.30, with a remarkable +0.94 percent gain of +181.50 points.

Indonesia’s IDX COMPOSITE (^JKSE) ended positively, closing at 6,977.65, with a +0.35 percent gain of +24.39 points.

The FTSE Bursa Malaysia KLCI (^KLSE) index posted a substantial gain of +0.79 percent Friday, closing at 1,463.43, up by +11.49 points.

South Korea’s KOSPI Composite Index (^KS11) exhibited a positive trend, closing at 2,563.71, up +7.44 points, or +0.29 percent with a trading volume of 493,367 shares.

In Taiwan, the TSEC weighted index (^TWII) experienced minor fluctuations, closing at 16,644.94, with a +0.06 percent gain of +10.43 points.

OCEANIA

Australia’s S&P/ASX 200 (^AXJO) closed at 7,278.30, marking a loss of -27.00 points, equivalent to a -0.37 percent decrease. Also in Australia, the ALL ORDINARIES (^AORD) declined by -27.90 points, closing at 7,489.90, representing a -0.37 percent decrease.

Across the Tasman, the S&P/NZX 50 INDEX GROSS (^NZ50) in New Zealand showed a slight decline, closing at 11,528.73, with a loss of -25.75 points, equivalent to a -0.22 percent decrease.

AFRICA

The Top 40 USD Net TRI Index (^JN0U.JO) in Johannesburg, South Africa, showed strength as it closed at 3,953.68 Friday, with a +0.53 percent gain of +20.75 points.

MIDDLE EAST

Israel’s TA-125 (^TA125.TA) also saw gains, closing at 1,873.76, with a +0.23 percent increase of +4.25 points.

In Egypt, the EGX 30 Price Return Index (^CASE30) closed at 18,873.80, with a gain of +55.60 points, representing a +0.30 percent increase, with a trading volume of 131.968 million shares.

The main focus for stocks on Friday around the world, as well as in the United States, was the nonfarm payrolls report.

The unemployment rate rose by 0.3 percentage point to 3.8 percent in August, and the number of unemployed persons increased by 514,000 to 6.4 million. Both measures differed little from a year earlier, when the unemployment rate was 3.7 percent and the number of unemployed persons was 6.0 million.

Among the major worker groups, the unemployment rates for adult men (3.7 percent), Whites (3.4 percent), and Asians (3.1 percent) rose in August. The jobless rates for adult women (3.2 percent), teenagers (12.2 percent), Blacks (5.3 percent), and Hispanics (4.9 percent) showed little change over the month.

Among the unemployed, the number of job losers and persons who completed temporary jobs increased by 294,000 to 2.9 million in August, offsetting a decrease of 280,000 in July. In August, the number of new entrants edged up to 597,000. (New entrants are unemployed persons with no previous work experience.) Both the number of persons unemployed less than 5 weeks, at 2.2 million, and the number of long- term unemployed (those jobless for 27 weeks or more), at 1.3 million, edged up in August. The long-term unemployed accounted for 20.3 percent of all unemployed persons.

In August, the labor force participation rate rose by 0.2 percentage point to 62.8 percent, after being flat since March. The employment-population ratio was unchanged over the month at 60.4 percent. The number of persons employed part time for economic reasons, at 4.2 million, changed little in August. These individuals, who would have preferred full-time employment, were working part time because their hours had been reduced or they were unable to find full-time jobs.

In August, the number of persons not in the labor force who currently want a job was 5.4 million, little changed from the prior month. These individuals were not counted as unemployed because they were not actively looking for work during the 4 weeks preceding the survey or were unavailable to take a job. Among those not in the labor force who wanted a job, the number of persons marginally attached to the labor force was little changed at 1.5 million in August. These individuals wanted and were available for work and had looked for a job sometime in the prior 12 months but had not looked for work in the 4 weeks preceding the survey. The number of discouraged workers, a subset of the marginally attached who believed that no jobs were available for them, also changed little over the month at 386,000.

Establishment Survey Data Total nonfarm payroll employment increased by 187,000 in August, less than the average monthly gain of 271,000 over the prior 12 months. In August, employment continued to trend up in health care, leisure and hospitality, social assistance, and construction. Employment in transportation and warehousing declined.

In August, health care added 71,000 jobs, following a gain of similar magnitude in the prior month. Over the month, job growth continued in ambulatory health care services (+40,000), nursing and residential care facilities (+17,000), and hospitals (+15,000). Employment in leisure and hospitality continued to trend up in August (+40,000). The industry had gained an average of 61,000 jobs per month over the prior 12 months. Employment in the industry remains below its pre-pandemic February 2020 level by 290,000, or 1.7 percent. Employment in social assistance increased by 26,000 in August, in line with the prior 12-month average gain (+22,000). Over the month, job growth continued in individual and family services (+21,000). Construction employment continued to trend up in August (+22,000), in line with the average monthly gain over the prior 12 months (+17,000). Within the industry, employment continued to trend up over the month in specialty trade contractors (+11,000) and in heavy and civil engineering construction (+7,000). Transportation and warehousing lost 34,000 jobs in August. Employment in truck transportation fell sharply (-37,000), largely reflecting a business closure. Couriers and messengers lost 9,000 jobs, while air transportation added 3,000 jobs.

Employment in transportation and warehousing had shown little net change over the prior 12 months. Employment in professional and business services changed little in August (+19,000) and has shown essentially no net change since May. Professional, scientific, and technical services employment continued to trend up over the month (+21,000). In contrast, employment in temporary help services continued to trend down (-19,000) and has declined by 242,000 since its peak in March 2022. Information employment changed little in August (-15,000). Within the industry, employment in motion picture and sound recording industries decreased by 17,000, reflecting strike activity. Job losses continued in telecommunications (-4,000). Employment showed little change over the month in other major industries, including mining, quarrying, and oil and gas extraction; manufacturing; wholesale trade; retail trade; financial activities; other services; and government.

In August, average hourly earnings for all employees on private nonfarm payrolls rose by 8 cents, or 0.2 percent, to $33.82. Over the past 12 months, average hourly earnings have increased by 4.3 percent. In August, average hourly earnings of private-sector production and nonsupervisory employees rose by 6 cents, or 0.2 percent, to $29.00. The average workweek for all employees on private nonfarm payrolls edged up by 0.1 hour to 34.4 hours in August. In manufacturing, the average workweek was 40.1 hours for the fifth month in a row, and overtime edged down by 0.1 hour to 3.0 hours. The average workweek for production and nonsupervisory employees on private nonfarm payrolls edged up by 0.1 hour to 33.8 hours. (See tables B-2 and B-7.) The change in total nonfarm payroll employment for June was revised down by 80,000, from +185,000 to +105,000, and the change for July was revised down by 30,000, from +187,000 to +157,000. With these revisions, employment in June and July combined is 110,000 lower than previously reported. (Monthly revisions result from additional reports received from businesses and government agencies since the last published estimates and from the recalculation of seasonal factors.)